Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CANYON SERVICES GROUP INC. We currently have 20 research reports from 1 professional analysts.
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CANYON SERVICES GROUP INC
CANYON SERVICES GROUP INC
Expands Capital Program to $28 mm from $12 mm
09 Sep 16
Canyon is upgrading eleven 2,500 hp pumps (27,500 hp) or 11% of its existing pressure pumping capacity to become 3,000 hp pumps. This new pump design is expected to lower Canyon’s cost structure due to greater durability and lower labour requirements. We believe a significant portion of Canyon’s fleet is capable of undergoing these upgrades. This would improve Canyon’s gross margins, but quantitatively addressing this is challenging at this juncture. We have only made modest changes to our estimates with this update. Amongst the FCC OFS covered companies, Canyon has been one of the most proactive in addressing ways to structurally change its cost structure through this downturn.
Positive Trends for Canadian Pressure Pumping
31 Aug 16
WCSB pressure pumping supply and demand is poised to benefit from an increase in stages per well and proppant per well. We believe this could cause supply and demand to tighten more quickly than anticipated in an activity recovery. Higher service intensity has been particularly evident in the Montney and Duvernay, where stages per well have generated a 2012-1Q16 CAGR of 23% and 44%, respectively, and a proppant per well CAGR of 39% and 62%. Our investment bias is towards Trican given it is the largest pure play Canadian pressure pumper, with excess equipment and a discounted valuation relative to its peers.
Outlook Unchanged, But A Few Interesting Operational Developments
08 Aug 16
Canyon reported 2Q16 EBITDAS of -$14 mm, marginally below our forecasted loss of -$12 mm. The quarter was negatively impacted by a bad debt expense of $4 mm which was tied to a company that has now filed for CCAA. Management suggested that 6,500 wells completed in Canada would utilize all of the 2.0 mm hp available in Western Canada. We would agree with the assessment based on our sensitivity modelling of HP demand. There are a number of bottlenecks that may limit pressure pumping capacity additions which includes increased capital spending to reactivate equipment and attracting people.
1Q16e Preview and Commodity Update – All Is Quiet on the Western Front
13 Apr 16
We are updating our oilfield industry forecasts post the release of FirstEnergy’s new commodity price forecast for crude oil and natural gas on March 24, 2016. We have updated our 2016e Canadian well count/drilling days forecast to 3,209/37,335 from 3,800/43,325. In 2017e, we have left our forecast unchanged at 6,200 wells/70,200 days. In the U.S., our 2016e rig count forecast is now 482 (prior: 610) and 2017e is 675 (prior: 775). Data for 1Q16e came in weaker than our prior forecast anticipated, and we have lowered our estimates across our coverage universe accordingly. We are currently below 1Q16 consensus for 15 of 18 companies in our coverage universe, but the percentages are misleading given the absolute size of EBITDAS being earned this quarter.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.